To calculate Slovak tax depreciation

LN allows you to calculate the tax depreciation for Slovakia in two methods:
  • Slovak Straight Line Depreciation
  • Slovak Accelerated Depreciation

Slovak Straight Line Depreciation

To calculate the Slovak straight line depreciation, this data must be defined in the Depreciation Method (tffam7110s000) session in accordance with the depreciation category of the Slovak authorities:
  • The Depreciation Method field to Slovak Depreciation
  • The Rate Table Type field to N/A
  • The Class Life for the asset

Depreciation formula:

current cost * (number of depreciation periods in current year / asset life)

Example

For an asset with Depreciation category 1 and a class life of 4 years, this is the depreciation calculation:

A car is purchased and capitalized in the month of May. The cost of the asset is 48,000 EUR.

First year depreciation: 48,000 * (8 / 48) = 8000 EUR

In the next year, the cost of the asset is increased by a technical upgrade of 6000 EUR. The updated depreciation for the next years:

Next year depreciation: (48000+6000) * (12 / 48) = 13,500 EUR
Last year depreciation: 5500 EUR

Slovak Accelerated Depreciation

To calculate the Slovak accelerated depreciation, this data must be defined in the Depreciation Method (tffam7110s000) session in accordance with the depreciation category of the Slovak authorities:
  • The Depreciation Method field to Slovak Depreciation
  • The Rate Table Type field to Yearly
  • The Class Life for the asset

Specify the corresponding coefficients in the Yearly Rates (tffam7165m000) session.

Depreciation formula first year: current cost / coefficient * (depreciation periods / yearly periods)
Depreciation formula next years: 2 * net book value*) / (coefficient - number of depreciation years)
Depreciation formula next years with technical upgrade: 
2 * net book value / (coefficient - number of depreciation years after technical upgrade)

*) - depreciation for the first year is considered in the net book value as if all the periods are depreciated

Example

For an asset with Depreciation category 1; coefficient defined for the yearly rate in the first year is 4, in the next years is 5 and for technical upgrade in the next year is 4. This is the depreciation calculation:

A car is purchased and capitalized in the month of May. The cost of the asset is 48,000 EUR.

First year depreciation: 48,000/4 * (8 / 12) = 8000 EUR
Depreciation year 1: 2 * (48,000 - 12,000) /(5 - 1) = 18,000 CZK
Depreciation year 2: 2 * (48,000 - 12,000 -18,000) /(5 - 2) = 12,000 CZK

In the next year, the cost of the asset is increased by a technical upgrade or evaluation adjustment of 6000 EUR. The updated depreciation for the next years:

Depreciation year 3:  2 * (48,000 + 6000 - 8000 - 18,000 - 12,000)/(4 - 0) = 8000 EUR